Chapter 2.70
PERFORMANCE MANAGEMENT
AND COMPENSATION PLAN
Sections:
2.70.010 Purpose in creating a compensation plan.
2.70.020 Appointive employee compensation committee.
2.70.030 Classification of positions.
2.70.050 Assigning salary grades to positions.
2.70.060 Authority for amending classification and salary rates.
2.70.070 Filling vacant positions.
2.70.080 New appointment review period.
2.70.090 Performance review and development process.
2.70.100 Performance/salary review.
2.70.110 Cost-of-living adjustments.
2.70.130 Compensation plan rules and procedures.
2.70.010 Purpose in creating a compensation plan.
A performance management and compensation plan is established for all city positions that are not covered by a collective bargaining agreement, excluding day laborers. This plan provides a systematic method of assigning pay, based on employee performance. The purpose of the plan is to attract, place, and retain the best-qualified people for our work force, and to encourage and reward the effective job performance of city employees who make a positive difference in the lives of city of Everett residents. (Ord. 2494-00 § 1.1, 2000)
2.70.020 Appointive employee compensation committee.
An appointive employee compensation committee is established to oversee the administration of the compensation and performance management plan. The committee is comprised of seven members who are appointive employees and are selected to serve on the committee by the mayor. Under the direction/approval of the mayor and city administration, the compensation committee’s responsibilities include the ongoing establishment, management, and revision of all appointive employee compensation rules and procedures. The committee also reviews and evaluates performance management plans and other programs that affect the compensation of covered employees, and it approves job class evaluations and market studies, as necessary. (Ord. 2494-00 § 1.2, 2000)
2.70.030 Classification of positions.
The positions covered by this plan will be classified and distinguished according to their requisite qualifications, including knowledge, skills, and abilities; education and experience; and physical demands and working conditions. (Ord. 2494-00 § 1.3, 2000)
2.70.040 Salary structure.
The plan shall consist of twenty-two salary ranges with ten steps within each range. Each range spread is approximately thirty percent from step one through step ten. Each step progression represents an approximate 2.96% increase in pay. Progression through a salary range depends on individual job performance. Employees will meet with their supervisor annually to review and discuss their performance over the previous year. Salary actions will be recommended based on this performance review information. (Ord. 2494-00 § 1.4, 2000)
2.70.050 Assigning salary grades to positions.
The positions will be formally and systematically evaluated to establish the relative value of each job within the city of Everett. This valuation process will examine the duties and responsibilities of each position and how it compares to other positions. The position evaluation process will be used to determine pay and to create and maintain organizational structure. All appointive and non-bargained positions will be evaluated on the basis of the following factors or categories:
• Knowledge and skills
• Supervisory controls
• Guidelines
• Job complexity
• Job scope and effect of actions
• Contacts
• Purpose of contacts
• Physical demands
• Work environment
A benchmark salary survey will be conducted every two years on key benchmark positions for comparison to the current market value of those positions. The mid-point of the pay ranges for the various appointive positions is intended to approximate the current mean market wage of comparable positions. The human resources manager shall present the findings of the biennial salary surveys to the compensation committee for review. (Ord. 2494-00 § 1.5, 2000)
2.70.060 Authority for amending classification and salary rates.
Department directors may request the revision of existing specifications, the creation of new specifications, or the reclassification of appointive employees to other existing appointive classifications. These requests shall be submitted to the labor relations/human resources director or designee, who shall evaluate the proposals with the aid of staff. The evaluation of these proposals will be conducted in accordance with the city of Everett’s appointive staff compensation plan policies and procedures referred to in Section 2.70.130, which are incorporated herein by reference. Human resources will refer proposals to the compensation committee for final approval. (Ord. 2494-00 § 1.6, 2000)
2.70.070 Filling vacant positions.
When a position is vacated, the affected department director and the human resources manager will review the work assigned to the position to assure that it is consistent with its current position description, classification, and pay range. If they determine that the position has changed significantly, the position description will be revised accordingly, and the job will be reevaluated to determine its appropriate classification and salary range. The compensation committee must approve any changes to classifications and salary ranges. (Ord. 2494-00 § 1.7, 2000)
2.70.080 New appointment review period.
Every new appointive employee will meet with his or her immediate supervisor to discuss the performance management and compensation plan and the performance appraisal process within the first week of being hired. During this meeting, the employee will be given a copy of the applicable position description and the current appointive employee performance evaluation form. New hires will have performance reviews with their immediate supervisor after thirty days, ninety days, and one hundred eighty days. Appointive employees who are reclassified or who receive new appointive assignments will also receive performance reviews after thirty days, ninety days, and one hundred eighty days. (Ord. 2494-00 § 1.8, 2000)
2.70.090 Performance review and development process.
As part of the appointive employees’ performance management and compensation plan, the human resources department shall establish and maintain an appointive employee performance review and development process. This process shall include a performance review form that defines required job performance characteristics and qualitatively differentiates levels of job performance. The performance review form may be used as one of the evaluation tools for salary increases, although its primary purpose is to initiate communication about the employee’s performance and the supervisor’s expectations. Step progression performance appraisals will be completed annually during the month of September for employees who have been employed for at least the previous six consecutive months. Supervisors will schedule initial goal setting meetings with their appointive employees in November or December to communicate expectations for the upcoming year. Supervisors should also meet with their employees at least one other time during the year to check the employees’ progress. (Ord. 2494-00 § 1.9, 2000)
2.70.100 Performance/salary review.
Some appointive employees may be eligible to advance in the steps of their salary range at the beginning of the calendar year following their annual review in September. Salary step increases are based on the employees’ performance, as measured through the performance review and development process. Based on the outcome of this process, department directors will submit their employees’ annual performance documentation and recommended salary increases to the labor relations/human resources director or designee for review. After addressing any discrepancies discerned in the directors’ submittals, the salary recommendations will be forwarded to city administration for final approval. Approved salary step increases will then be documented through the subsequent submittal of current payroll approval forms. (Ord. 2494-00 § 1.10, 2000)
2.70.110 Cost-of-living adjustments.
When authorized and approved by the city council, cost-of-living adjustments will be applied to the current salary structure. Generally, cost-of-living adjustments will be made in January based upon a percentage of the CPI-U change for the Seattle-Tacoma area during the previous June-to-June time period. Individual performance ratings, as determined in the performance review and development process, will be utilized in determining employees’ eligibility for cost-of-living adjustments to their base salaries. (Ord. 2494-00 § 1.11, 2000)
2.70.120 Definitions.
A. Promotions. Promotions occur when an employee is appointed to a vacant job in a higher salary range. Increases will be granted in recognition of the degree of increased responsibility and will take into account the employee’s current salary range step. Human resources will review all promotion processes and will recommend increased amounts to maintain internal equity and consistency within the organization.
1. Timing. When promoted, pay will be adjusted at the next pay period and effective the first day of the new assignment.
2. Amount. Salary increases for a promotion will normally be an amount sufficient to place the employee at the first step (step one) of his or her new salary range, or an amount equivalent to an increase of two steps on the employee’s existing salary range, whichever amount is greater.
B. Demotions. An employee who requests a voluntary demotion will receive the same salary as long as it does not exceed the top step of the new range to which he or she is assigned. If the demotion was the result of a downgrade or reorganization, the employee’s salary may be redlined for up to two years if it exceeds the top step of the new range. If the demotion is due to performance deficiencies or misconduct, the employee’s salary can be placed anywhere in the new range, as determined by the mayor or designee.
C. Transfers. A transfer to another job within the same classification or salary range is considered a lateral move. Salary will be reviewed at the employee’s regular performance appraisal date.
D. New Employee’s Pay. An employee’s initial rate of pay is based upon the position’s assigned salary range and the new employee’s relevant training, education and experience. New employees should receive a salary beginning at step one of the range for their position when they possess the minimum education and experience requirements. If the new employee has considerable experience and/or training and education above the minimum requirements, a starting salary of up to step five of the salary range may be assigned. Any starting salary above step five of the range must be requested and justified by the department director, reviewed by the human resources manager and the labor relations/human resources director. Such requests will be forwarded to the compensation committee for approval.
E. Redlined Employees. As a result of the benchmark salary survey, the salaries of some employees may be frozen until the annual adjustments made to the range raise the amount of the top step of the range to a point where the redlined employees’ salaries are below the maximum salary for the range. Depending on their performance, employees who are redlined may receive a cost-of- living adjustment each year; however, a portion or all of this adjustment will not be added to their base salary but will be separately and equally apportioned in the twenty-six pay periods.
F. External Market Valuation. Extraordinary trends in the external labor market and problems with recruitment and retention may necessitate the adjustment of the salaries for certain positions. On a limited and exceptional basis, and as recommended by the mayor and approved by the compensation committee, salary increases may be attributed to certain positions independent of the steps in the grades to which these positions are assigned. The amounts of these increases must be justified by current salary survey data, and they will be separately and equally apportioned in the twenty-six pay periods. (Ord. 2494-00 § 1.12, 2000)
2.70.130 Compensation plan rules and procedures.
In addition to this chapter, the labor relations/human resources director shall establish rules and procedures governing the specific details, terms, and conditions of the compensation plan. The compensation committee shall approve these rules and procedures. (Ord. 2494-00 § 1.13, 2000)